Fertilizers push EGX indices higher in week; market cap gains EGP 85 bln

Muhammed Khalid , Wednesday 24 Jan 2024

The Egyptian Exchange (EGX) indices ended the week higher, supported by fertilizers stocks, and the market cap gained EGP 85 billion.

EGX trading hall. Ahram Gate.
EGX trading hall. Ahram Gate.


The main index EGX30 grew by 3.07 percent throughout the week, settling at 27,666 points.

Talking to Ahram Online, financial market analyst Hanin El-Mahdy attributed the increase in the EGX30 to various sectors. She cited the fertilizers and petrochemicals sector, exemplified by Misr Fertilizers Production, which exhibited a remarkable growth of 17.6 percent.

In addition, she noted that the Real Estate sector, represented by Talaat Moustafa Group, recorded a substantial growth of 23.7 percent, and the Transportation sector, represented by Alexandria Containers, grew by 7.18 percent.

El-Mahdy also said that in the Banking sector, Credit Agricole and Abu Dhabi Islamic Bank saw growth rates of 7.5 percent and 3.3 percent, respectively.

On the other hand, the EGX70 surged by 3.93 percent, and the EGX100 rose by 3.54 percent to close the week at 6,584 points and 9,320 points, respectively.

El-Mahdy asserted that stocks are now officially recognized "as a hedging tool" and explained the reason behind the rapid ascent of the index. In her view, stocks have become "undervalued" after the dollar surpassed EGP 60 in the black market.

Anticipating another significant week for EGX, El-Mahdy predicted new targets. However, she noted that the upcoming Central Bank of Egypt meeting on 1 February "may introduce uncertainties, particularly concerning interest rates and devaluation decisions."

These uncertainties, she added, could prompt a correction by the end of the week, emphasizing that corrections are "a healthy aspect of any stock market's performance."

The market cap jumped over the week by 4.54 percent, or EGP 85, to reach more than EGP 1,971 billion.

Moreover, the trading value recorded EGP 210.8 billion generated through 762,000 transactions on 6.01 billion securities.

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